717.200
Definitions.
As used in ORS 717.200 to 717.320, 717.900 and 717.905, unless the context
requires otherwise:

(1)
“Applicant” means a person that files an application for a license under ORS
717.200 to 717.320, 717.900 and 717.905.

(2)
“Authorized delegate” means a person that a licensee designates under the
provisions of ORS 717.200 to 717.320, 717.900 and 717.905 to sell or issue
payment instruments or engage in the business of transmitting money on the
licensee’s behalf.

(3)
“Control” means possessing, directly or indirectly, the power to direct or
cause the direction of a person’s management and policies, whether through
ownership of voting securities, by contract or otherwise.

(4)
“Controlling person” means any person in control of a licensee or applicant for
a license.

(5)
“Controlling shareholder” means any person, or group of persons acting in
concert, that owns 25 percent or more of any voting class of an applicant’s
stock.

(6)(a)
“Electronic instrument” means a card or other tangible object for transmitting
or paying money that contains a microprocessor chip, magnetic stripe or other
means for storing information, that is prefunded and for which the value is
decremented upon each use.

(b)
“Electronic instrument” does not include a card or other tangible object that
the issuer may redeem in the issuer’s goods or services.

(7)
“Executive officer” means the licensee’s president, chairperson of the
executive committee, senior officer responsible for the licensee’s business,
chief financial officer and any other person who performs similar functions.

(9)
“Material litigation” means any litigation that, according to generally
accepted accounting principles, is significant to an applicant’s or licensee’s
financial health and to which the applicant or licensee must refer in the
applicant’s or licensee’s annual audited financial statements, report to
shareholders or similar documents.

(10)
“Money” means a medium of exchange that:

(a)
The United States or a foreign government authorizes or adopts; or

(b)
Represents value that substitutes for currency but that does not benefit from
government regulation requiring acceptance of the medium of exchange as legal
tender.

(11)
“Money transmission” means selling or issuing payment instruments or engaging
in the business of receiving money for transmission, or transmitting money
within the United States or to locations abroad by any and all means, including
but not limited to payment instrument, wire, facsimile or electronic transfer.

(12)
“Nationwide Multistate Licensing System” means a system that the Conference of
State Bank Supervisors and the American Association of Residential Mortgage
Regulators, or assigns of the Conference of State Bank Supervisors or the
American Association of Residential Mortgage Regulators, develop and maintain
for participating state agencies to use in licensing and registering mortgage
loan originators and other persons that provide nondepository financial
services.

(13)(a)
“Payment instrument” means any electronic or written check, draft, money order,
traveler’s check or other electronic or written instrument or order for
transmitting or paying money, sold or issued to one or more persons, whether or
not the instrument is negotiable.

(b)
“Payment instrument” does not include any credit card voucher, any letter of
credit or any instrument that is redeemable by the issuer in goods or services.

(14)
“Outstanding payment instrument” means any payment instrument that a licensee
issued and sold in the United States, or that a licensee issued and an
authorized delegate of the licensee sold in the United States, and that has
been reported to the licensee as having been sold but that has not yet been
paid by or for the licensee.

(15)
“Permissible investments” means:

(a)
Cash;

(b)
Certificates of deposit or other debt obligations of a financial institution,
either domestic or foreign;

(c)
Bills of exchange or time drafts drawn on and accepted by a commercial bank,
otherwise known as bankers’ acceptances, that are eligible for purchase by
member banks of the Federal Reserve System;

(d)
Any investment security bearing a rating of one of the three highest grades as
defined by a nationally recognized organization that rates such securities;

(e)
Investment securities that are obligations of the United States Government, or
agencies or instrumentalities of the United States Government, or obligations
that the United States guarantees fully as to principal and interest, or any
obligations of any state, municipality or any political subdivision of a state
or municipality;

(f)
Shares in a money market mutual fund, interest-bearing bills, notes or bonds,
debentures or stock traded on any national securities exchange or national
market system, mutual funds primarily composed of such securities or a fund
composed of one or more permissible investments as set forth herein;

(g)
Any demand borrowing agreement or agreements made with a corporation or a
subsidiary of a corporation the capital stock of which is listed on a national
securities exchange;

(h)
Receivables that are due to a licensee from the licensee’s authorized delegates
under a contract described in ORS 717.270 and that are not past due or doubtful
of collection; or

(i)
Any other investments or security device approved by the Director of the
Department of Consumer and Business Services.

(17)
“Remit” means either to pay funds directly to a licensee or representatives of
a licensee authorized to receive the funds, or to deposit the funds in a bank,
credit union or savings and loan association or other similar financial
institution in an account that the licensee specifies.

(18)
“Security device” means a surety bond, irrevocable letter of credit issued by
an insured institution as defined in ORS 706.008 or other similar security
acceptable to the Director of the Department of Consumer and Business Services.
[1999 c.571 §2; 2001 c.104 §283; 2015 c.118 §6]

717.205
License required to conduct money transmission business; relationship to
banking; licensing program. (1) A person, other than a person that is exempt
under ORS 717.210, may not conduct a money transmission business without a
license that the Director of the Department of Consumer and Business Services
issues in accordance with ORS 717.200 to 717.320, 717.900 and 717.905.

(2)
A licensee may conduct business in this state at one or more locations that the
licensee owns directly or indirectly, through one or more authorized delegates,
or both. A licensee is required to obtain only one license under ORS 717.200 to
717.320, 717.900 and 717.905.

(3)
Conducting a money transmission business does not alone constitute banking or
branch banking for the purposes of the Bank Act.

(4)
The director has jurisdiction over a person that conducts a money transmission
business whether or not the person is a licensee or authorized delegate.

(5)
The director, consistent with the requirements of ORS 717.200 to 717.320,
717.900 and 717.905, may administer a program to issue and renew licenses for
money-transmission businesses by means of an agreement with the Nationwide
Multistate Licensing System. [1999 c.571 §3; 2015 c.118 §7]

(a)
Any company that accepts deposits in this state and that is insured under the
Federal Deposit Insurance Act, 12 U.S.C. 1811 et seq., as amended.

(b)
Credit unions or trust companies.

(c)
The United States Government or any department, agency or instrumentality
thereof.

(d)
The United States Postal Service.

(e)
Any state or political subdivision of a state.

(f)
The provision or electronic transfer of government benefits for any federal,
state or county government or other agency as defined in the Federal Reserve
Board Regulation E (12 C.F.R. part 205), by a contractor for and on behalf of
the United States Government or any department, agency or instrumentality of
the United States, or any state or any political subdivision of a state.

(g)
The provision or handling of electronic or other transfer of escrowed moneys by
an escrow agent licensed under ORS 696.511 to the extent that the escrow agent
is:

(A)
Closing an escrow, as defined in ORS 696.505;

(B)
Engaging in activity related to a collection escrow, as defined in ORS 696.505;
or

(C)
Serving as a trustee of a trust deed in accordance with ORS 86.713.

(h)
Authorized delegates of a licensee, acting within the scope of authority
conferred by a written contract as described in ORS 717.270.

(i)
Any bank holding company as defined in the federal Bank Holding Company Act of
1956, 12 U.S.C. 1841 et seq., as amended, or any financial holding company as
defined in ORS 706.008.

(j)
Any savings and loan holding company as defined in 12 U.S.C. 1467a (a)(1)(D),
as amended.

(2)
The Director of the Department of Consumer and Business Services by rule or
order may modify or waive the application of ORS 717.200 to 717.320, 717.900
and 717.905 to any person or group of persons if the director determines that
adequate regulation of the person or group of persons is provided by law or by
another agency of this state.

(3)
The director by rule or order may temporarily suspend the application of ORS
717.200 to 717.320, 717.900 and 717.905 to any person or group of persons while
the director considers whether an exemption should be granted and during the
pendency of any rulemaking proceeding proposing to create an exemption. [1999
c.571 §4; 2001 c.377 §50; 2013 c.444 §3]

717.215
Requirements for licensees; net worth; permissible investments. (1) Each licensee
shall at all times have a net worth of not less than $100,000, calculated in
accordance with generally accepted accounting principles. Licensees engaging in
money transmission at more than one location or through authorized delegates
shall have an additional net worth of $25,000 per location in this state, not
to exceed a maximum of $500,000.

(2)
Every applicant, at the time of filing of an application for a license under
ORS 717.200 to 717.320, 717.900 and 717.905 and at all times after a license is
issued, shall be in good standing in the state of its incorporation or
organization.

(3)
Each licensee shall at all times possess permissible investments having an
aggregate market value, calculated in accordance with generally accepted
accounting principles, of not less than the aggregate face amount of all
outstanding payment instruments issued or sold by the licensee in the United
States. This requirement may be waived by the Director of the Department of
Consumer and Business Services if the dollar volume of a licensee’s outstanding
payment instruments does not exceed the amount of any security device posted by
the licensee under ORS 717.225.

(4)
In the event of the bankruptcy of the licensee, permissible investments, even
if commingled with other assets of the licensee, are considered by operation of
law to be held in trust for the benefit of the purchasers and holders of the
licensee’s outstanding payment instruments. [1999 c.571 §5]

717.220
License application; rules. (1)(a) A person shall apply for a license under ORS
717.200 to 717.320, 717.900 and 717.905 in writing on a form and in a format
the Director of the Department of Consumer and Business Services prescribes by
rule.

(b)
The director, by rule, may conform the practices, procedures and information
that the Department of Consumer and Business Services uses to issue and renew
licenses for conducting a money transmission business to the requirements of
the Nationwide Multistate Licensing System.

(2)
For all applicants, the application must contain:

(a)
The applicant’s exact name and principal address, any fictitious name, assumed
business name or trade name the applicant uses to conduct business and the
location of the applicant’s business records;

(b)
The history of the applicant’s material litigation and criminal convictions for
the five-year period before the date of the application;

(c)
A history of operations and a description of the business activities in which
the applicant seeks to engage in this state;

(d)
A list of the applicant’s proposed authorized delegates in the state, if any,
at the time the applicant files the license application;

(e)
A sample authorized delegate contract, if applicable;

(f)
A sample form of payment instrument, if applicable;

(g)
The address of each location at which the applicant and the applicant’s
authorized delegates, if any, propose to conduct a money transmission business
in this state;

(h)
The name and address of the clearing bank or banks on which the applicant’s
payment instruments will be drawn or through which the payment instruments will
be payable; and

(i)
A business plan.

(3)
If the applicant is a corporation, the application must contain:

(a)
The date of the applicant’s incorporation and state of incorporation;

(b)
A certificate of good standing from the state in which the applicant was
incorporated;

(c)
A description of the corporate structure of the applicant, including the
identity of any parent or subsidiary of the applicant, and the disclosure of
whether any parent or subsidiary is publicly traded on any stock exchange;

(d)
The name, business and residence address and employment history for the past
five years of the applicant’s executive officers and the officers or managers
who will be in charge of the applicant’s money transmission business;

(e)
The name, business and residence address of the applicant’s controlling
shareholders and the controlling shareholders’ employment histories for the
five-year period before the date of the application;

(f)
The history of material litigation and criminal convictions for all of the
applicant’s executive officers and controlling shareholders in the five-year
period before the date of the application;

(g)
A copy of the applicant’s most recent audited financial statement, including
balance sheet, statement of income or loss, statement of changes in shareholder
equity and statement of changes in financial position and, if available, a copy
of the applicant’s audited financial statements for the immediately preceding
two-year period. If the applicant is a wholly owned subsidiary of another
corporation, the applicant may submit either the parent corporation’s
consolidated audited financial statements for the current year and for the
immediately preceding two-year period, or the parent corporation’s Form 10K
reports filed with the United States Securities and Exchange Commission for the
prior three years, in lieu of the applicant’s financial statements. If the
applicant is a wholly owned subsidiary of a corporation with a principal place
of business outside the United States, the applicant may submit similar
documentation filed with the parent corporation’s foreign regulator to satisfy
the requirements of this paragraph; and

(h)
Copies of all filings, if any, the applicant made with the United States
Securities and Exchange Commission, or with a similar regulator in a country
other than the United States, within the year preceding the date of the
application.

(4)
If the applicant is not a corporation, the application must contain:

(a)
The name, business and residence address, personal financial statement and
employment history for the past five years of each principal of the applicant
and the name, business and residence address, and employment history for the
past five years of any other person that will be in charge of the applicant’s
money transmission business;

(b)
The history of material litigation and criminal convictions in the five-year
period before the date of the application for each individual who has any
ownership interest in the applicant and each individual who exercises
supervisory responsibility with respect to the applicant’s activities; and

(c)
Copies of the applicant’s audited financial statements, including balance
sheet, statement of income or loss, and statement of changes in financial
position, for the current year and, if available, a copy of the applicant’s
audited financial statements for the immediately preceding two-year period.

(5)
The director, for good cause shown or in order to conform the department’s
licensing and license renewal program to the requirements of the Nationwide
Multistate Licensing System, may waive any requirement of this section with
respect to any license application or may allow an applicant to submit
substituted information in a license application in lieu of the information
required under subsection (2) of this section. [1999 c.571 §6; 2005 c.21 §12;
2015 c.118 §8]

717.225
Security devices.
(1) Each license application shall be accompanied by a security device in the
amount of $25,000. If the applicant proposes to engage in business under ORS
717.200 to 717.320, 717.900 and 717.905 at more than one location through
authorized delegates or otherwise, the amount of the security device shall
increase by $5,000 per location, not to exceed a maximum of $150,000. The
security device shall be in a form satisfactory to the Director of the
Department of Consumer and Business Services and shall run to the State of
Oregon for the benefit of any claimants against the licensee to secure the
faithful performance of the obligations of the licensee with respect to the
receipt, handling, transmission and payment of money in connection with the
sale and issuance of payment instruments or transmission of money. The
aggregate liability on any security device shall not exceed the principal sum
of the security device. Claimants against the licensee may bring suit directly
on the security device or the director may bring suit on behalf of such
claimants, either in one action or in successive actions.

(2)
In lieu of the requirements of subsection (1) of this section, a licensee may
deposit with the director, or with insured institutions as defined in ORS
706.008 located in this state and designated by the licensee and approved by
the director, securities in an aggregate amount, based upon principal amount or
market value, whichever is lower, of not less than the amount of the security
device applicable under subsection (1) of this section or portion thereof. The
securities shall be held to secure the same obligations as would the security
device. The depositor shall be entitled to receive all interest and dividends
on the securities and may, with the approval of the director, substitute other
securities for those deposited. The director, in writing, for good cause shown,
may require the depositor to substitute other securities for those deposited.
As used in this subsection, “securities” includes interest-bearing stocks and
bonds, notes, debentures or other obligations of the United States Government
or any agency or instrumentality of the United States Government, or guaranteed
by the United States Government, or of this state, or of a city, county,
district or instrumentality of this state, or guaranteed by this state.

(3)
The security device shall remain in effect until cancellation, which may occur
only after 30 days’ written notice to the director. Cancellation shall not
affect any liability incurred or accrued during the 30-day period.

(4)
The security device shall remain in place for no longer than five years after
the licensee ceases money transmission operations in this state. However,
notwithstanding this provision, the director may permit the security device to
be reduced or eliminated prior to that time to the extent that the amount of
the licensee’s payment instruments outstanding in this state are reduced. The
director may also permit a licensee to substitute a letter of credit or such
other form of security device acceptable to the director for the security
device in place at the time the licensee ceases money transmission operations
in this state.

(5)
In the event of bankruptcy of the licensee, the security device shall be
considered by operation of law to be held in trust for the benefit of
purchasers and holders of the licensee’s outstanding payment instruments. [1999
c.571 §7]

717.230
Application fee.
At the time an applicant submits an application, the applicant shall pay to the
Director of the Department of Consumer and Business Services a fee of $1,000
for a license term that expires at the end of the calendar year in which the
applicant submitted the application. [1999 c.571 §8; 2015 c.118 §9]

717.235
License issuance; grounds for disapproval of application; appeals. (1) Upon the
filing of a complete application, the Director of the Department of Consumer
and Business Services shall review the application and may investigate the
financial condition and responsibility, financial and business experience,
character and general fitness of the applicant. The director may conduct an
on-site investigation of the applicant, the reasonable cost of which shall be
paid by the applicant. The director may disapprove an application if the
director finds that the applicant:

(a)
Is insolvent, either in the sense that the person’s liabilities exceed the
person’s assets or that the person cannot meet obligations as they mature, or
that the person is in such financial condition that the person cannot continue
in business with safety to the person’s customers;

(b)
Has engaged in dishonest, fraudulent or illegal practices or conduct in any
business or profession;

(c)
Has willfully or repeatedly violated or failed to comply with a provision of
the Oregon Bank Act, Oregon Securities Law, Oregon Credit Union Act, Oregon
Consumer Finance Act or Pawnbrokers Act or any rule or order of the director
adopted under those laws;

(d)
Has been convicted of a crime, an essential element of which is fraud;

(e)
Is not qualified to engage in the business of money transmission on the basis
of such factors as training, experience and knowledge of the business;

(f)
Is permanently or temporarily enjoined by a court of competent jurisdiction
from engaging in or continuing any conduct or practice involving an aspect of
the banking business or of the money transmission business;

(g)
Is the subject of an order of the director subjecting the person to a civil
penalty or removing the person from an office in any entity regulated by the
director; or

(h)
Is the subject of an order entered within the past five years, subjecting the
person to a civil penalty or removing the person from an office in a state or
federally chartered, licensed or regulated financial services company.

(2)
The director may also disapprove an application if the director finds that a
controlling person is subject to a provision of subsection (1) of this section
except subsection (1)(a) or (e) of this section. If a controlling person is the
sole owner of the applicant, then the director may disapprove an application if
the director finds that the controlling person is subject to a provision of
subsection (1) of this section.

(3)
If the director finds that the applicant’s business will be conducted honestly,
fairly and in a manner commanding the confidence and trust of the community,
and that the applicant has fulfilled the requirements imposed by ORS 717.200 to
717.320, 717.900 and 717.905 and has paid the required license fee, the
director shall issue a license to the applicant authorizing the applicant to
conduct money transmission business in this state for a term of one year. If
these requirements have not been met, the director shall deny the application
in writing and shall describe the reasons for the denial.

(4)
An order of the director denying an application under ORS 717.200 to 717.320,
717.900 and 717.905 shall state the grounds upon which the order is based and
shall not become effective for at least 20 days after written notice of the
order has been sent by registered or certified mail to the applicant at the
principal place of business of the applicant.

(5)
Appeals from an order of the director denying an application may be taken to
the courts of this state as provided by ORS chapter 183. [1999 c.571 §9; 2009 c.541
§37; 2011 c.597 §289]

717.240
License renewal; annual fee; renewal report; rules. (1)(a) To renew a
license, each licensee shall pay to the Director of the Department of Consumer
and Business Services a nonrefundable annual fee of $500 or a fee that the
director sets by rule in an amount that does not exceed $1,000.

(b)
In addition to paying the fee described in paragraph (a) of this subsection, a
licensee shall provide information necessary for the director to evaluate the
licensee’s renewal application. The director shall prescribe the information
required by rule. The director may require a licensee to renew a license under
the terms of the director’s agreement with the Nationwide Multistate Licensing
System.

(2)
At the time the licensee pays the renewal fee, the licensee shall submit an
annual report on a date and in a form and format the director prescribes by
rule. The annual report must describe the condition and operations of the money
transmission business during the preceding calendar year and must include:

(a)
A copy of the licensee’s most recent audited consolidated annual financial
statement, including a balance sheet, statement of income or loss, statement of
changes in shareholder equity and statement of changes in financial position. In
the case of a licensee that is a wholly owned subsidiary of another
corporation, the consolidated audited annual financial statement of the parent
corporation may be filed in lieu of the licensee’s audited annual financial
statement.

(b)
For the most recent quarter for which data are available before the date of the
renewal application, but not more than 120 days before the renewal date, a
description of the number of payment instruments the licensee sold in this
state, the dollar amount of the payment instruments and the dollar amount of
payment instruments currently outstanding.

(c)
A description of any material changes to any of the information the licensee
submitted on the licensee’s original application that the licensee has not
previously reported to the director on any other report required to be filed
with the director.

(d)
A list of the licensee’s permissible investments.

(e)
A list of the locations within this state at which the licensee or an
authorized delegate of the licensee is conducting business regulated by ORS
717.200 to 717.320, 717.900 and 717.905. [1999 c.571 §10; 2015 c.118 §10]

717.245
Events requiring filing of report with director. Within 15 days
following the occurrence of any one of the events listed in this section, a
licensee shall file a written report with the Director of the Department of
Consumer and Business Services describing the event and the event’s expected
effect on the licensee’s activities in this state:

(1)
The filing for bankruptcy or reorganization by the licensee or the licensee’s
sole owner;

(2)
The commencement of revocation or suspension proceedings against the licensee
by any state or governmental authority with regard to the licensee’s money
transmission activities;

(3)
Any felony indictment of the licensee or any of its key officers or directors;

(4)
Any felony conviction of the licensee or any of its key officers or directors;
or

(5)
The theft of payment instruments from the licensee in an amount equal to or
greater than 10 percent of a licensee’s monthly amount of outstanding payment
instruments. [1999 c.571 §11]

717.250
Notice of change or acquisition of control of licensee; waiver; rules. (1) Within 15
days of a change or acquisition of control of a licensee, the licensee shall
provide notice of the change to the Director of the Department of Consumer and
Business Services in writing and in a form the director may prescribe by rule.
The notice shall be accompanied by such information, data and records as the
director may require by rule.

(2)
Notwithstanding subsection (1) of this section, the director may waive the
notice requirement if the director determines that the change in control does
not pose any risk to the interests of the public. [1999 c.571 §12]

717.255
Examination of licensee; notice; costs. (1) The Director of the Department of
Consumer and Business Services may conduct an annual on-site examination of a
licensee upon reasonable notice to the licensee. The examination may be
conducted at the principal place of business of the licensee. Upon reasonable
notice, the director may also conduct an examination of any location of the
licensee and its authorized delegates. The on-site examination may be conducted
in conjunction with examinations to be performed by representatives of agencies
of other states. In lieu of an annual on-site examination, the director may
accept the examination report of an agency of another state or a report
prepared by an independent accountancy organization. Reports so accepted are
considered for all purposes as an official report of the director.

(2)
The director may conduct an on-site examination of a licensee or any authorized
delegate without prior notice to the licensee or authorized delegate if the
director has a reasonable basis to believe that the licensee or authorized
delegate is in violation of any provision of ORS 717.200 to 717.320, 717.900
and 717.905. The examination may be conducted at the principal place of
business of the licensee or authorized delegate.

(3)
The director shall have authority to examine under oath all persons whose
testimony the director may require in order to conduct the examination.

(4)
Each licensee examined under this section shall pay $60 per hour for each
examiner, plus costs of an examination, to the director. The director may
maintain an action for the recovery of such costs in any court of competent
jurisdiction. [1999 c.571 §13; 2001 c.104 §284]

717.260
Retention of records.
(1) Each licensee shall make, keep and preserve the following books, accounts
and other records for a period of three years:

(a)
A record of each payment instrument sold;

(b)
A general ledger, posted at least once per month, containing all assets,
liabilities, capital, income and expense accounts;

(c)
Settlement sheets received from authorized delegates;

(d)
Bank statements and bank reconciliation records;

(e)
Records of outstanding payment instruments;

(f)
Records of each payment instrument paid within the three-year period; and

(g)
A list of the names and addresses of all the licensee’s authorized delegates.

(2)
Books, accounts and other records required to be maintained under subsection
(1) of this section may be maintained:

(a)
In a photographic, electronic or other similar form.

(b)
At a location outside this state, so long as the books, accounts and other
records are made accessible to the Director of the Department of Consumer and
Business Services following seven days’ written notice. [1999 c.571 §14]

717.265
Suspension or revocation of license; appeals. (1) The Director of the Department
of Consumer and Business Services may by order suspend or revoke a license
issued under ORS 717.200 to 717.320, 717.900 and 717.905 if the director finds
that:

(a)
Any fact or condition exists that, if it had existed at the time when the
licensee applied for a license, would have been grounds for denying the
application;

(b)
The licensee’s net worth is inadequate and the licensee, following 10 days’
written notice from the director, fails to take such steps as the director
considers necessary to remedy the inadequacy;

(c)
The licensee has violated any material provision of ORS 717.200 to 717.320,
717.900 and 717.905 or of any rule or order validly adopted or issued by the
director under ORS 717.200 to 717.320, 717.900 and 717.905;

(d)
The licensee is conducting its business in an unsafe or unsound manner;

(e)
The licensee is insolvent;

(f)
The licensee has suspended payment of its obligations, has made an assignment
for the benefit of its creditors or has admitted in writing its inability to
pay its debts as they become due;

(g)
The licensee has applied for an adjudication of bankruptcy, reorganization,
arrangement or other relief under any bankruptcy proceeding;

(h)
The licensee refuses to permit the director to make any examination authorized
by ORS 717.200 to 717.320, 717.900 and 717.905;

(i)
The licensee knowingly fails to make any report required by ORS 717.200 to
717.320, 717.900 and 717.905;

(j)
The licensee has failed to maintain the security device or other securities as
required by ORS 717.225;

(k)
The licensee has engaged in fraud in the conduct of the money transmission
business;

(L)
The licensee knowingly has submitted false information to the director; or

(m)
The licensee has failed to terminate an authorized delegate when so ordered by
the director.

(2)
The suspension or revocation of a license shall not:

(a)
Affect the licensee’s civil or criminal liability for acts committed prior to
the suspension or revocation;

(b)
Affect the liability of the surety on the licensee’s security device; or

(c)
Entitle the licensee to a return of any part of the license or renewal fee.

(3)
Except for nonpayment of any fees required by ORS 717.200 to 717.320, 717.900
and 717.905 and except as provided in subsection (4) of this section, a license
shall not be revoked or suspended by the director without opportunity for a
hearing in accordance with ORS chapter 183.

(4)
If required to protect the public interest, a license may be suspended without
a hearing in accordance with ORS 183.430 (2).

(5)
An order of the director revoking or suspending a license issued under ORS
717.200 to 717.320, 717.900 and 717.905 shall state the grounds upon which the
order is based and, except for a summary order issued in accordance with ORS
183.430 (2), shall not become effective for at least 20 days after written
notice of the order has been sent by registered or certified mail to the
licensee at the principal place of business of the licensee.

(6)
Appeals from an order of the director revoking or suspending a license may be
taken to the courts of this state as provided by ORS chapter 183. [1999 c.571 §15]

717.270
Conduct of money transmission business through authorized delegates; contracts. Licensees
desiring to conduct a money transmission business through authorized delegates
shall authorize each delegate to operate pursuant to an express written
contract. The contract shall specify the following:

(1)
That the licensee appoints the person as the licensee’s delegate with authority
to engage in money transmission on behalf of the licensee;

(2)
That neither a licensee nor an authorized delegate may authorize subdelegates
without the written consent of the Director of the Department of Consumer and
Business Services; and

(3)
That licensees, authorized delegates and subdelegates are subject to
supervision and regulation by the director. [1999 c.571 §16]

717.275
Requirements for authorized delegates. (1) An authorized delegate shall not make
any fraudulent or false statement or misrepresentation to a licensee or to the
Director of the Department of Consumer and Business Services.

(2)
All money transmission activities conducted by authorized delegates shall be
strictly in accordance with the licensee’s written procedures provided to the
authorized delegate.

(3)
An authorized delegate shall remit all money owing to the licensee in
accordance with the terms of the contract between the licensee and the
authorized delegate. The failure of an authorized delegate to remit all money
owing to a licensee within the time prescribed shall result in liability of the
authorized delegate to the licensee for three times the licensee’s actual
damages.

(4)
An authorized delegate is considered to consent to the director’s inspection,
with or without prior notice to the licensee or authorized delegate, of the
books and records of the authorized delegate when the director has a reasonable
basis to believe that the licensee or authorized delegate is in noncompliance
with ORS 717.200 to 717.320, 717.900 and 717.905.

(5)
An authorized delegate is under a duty to act only as authorized under the
contract with the licensee. An authorized delegate that exceeds the delegate’s
authority is subject to cancellation of the delegate’s contract and further
disciplinary action by the director.

(6)
All funds, not including fees, received by an authorized delegate from the sale
or delivery of a payment instrument issued by a licensee, or received by an
authorized delegate for transmission, shall constitute trust funds owned by and
belonging to the licensee during the period beginning when the funds are
received by the authorized delegate and ending when the funds or an equivalent amount
are remitted by the authorized delegate to the licensee. If an authorized
delegate commingles any such funds with any other funds or property owned or
controlled by the authorized delegate, all commingled proceeds and other
property shall be impressed with a trust in favor of the licensee in an amount
equal to the amount of the proceeds due the licensee.

(7)
An authorized delegate shall report to the licensee the theft or loss of
payment instruments within 24 hours from the time the authorized delegate first
knows of the theft or loss. [1999 c.571 §17]

717.280
Order suspending or barring authorized delegate; grounds; appeals. (1) For any
reason specified in subsection (2) of this section, the Director of the
Department of Consumer and Business Services may issue an order suspending or
barring an authorized delegate from continuing to be or becoming an authorized
delegate during the period specified in the order. An order issued under this
section shall require the licensee to terminate the licensee’s relationship
with the authorized delegate during the period specified in the order.

(2)
The director may issue an order under subsection (1) of this section if the
director finds that an authorized delegate or any director, officer, employee
or controlling person of the authorized delegate has:

(a)
Violated any provision of ORS 717.200 to 717.320, 717.900 and 717.905 or of any
rule adopted or order issued under ORS 717.200 to 717.320, 717.900 and 717.905;

(b)
Engaged or participated in any unsafe or unsound act with respect to the
business of selling or issuing payment instruments of the licensee or the
business of money transmission; or

(c)
Made or caused to be made in any application or report filed with the director,
or in any proceeding before the director, any statement that was, at the time
and in the circumstances under which it was made, false or misleading with
respect to any material fact, or has omitted to state in any such application
or report any material fact that is required to be stated in the application or
report.

(3)
Except as provided in subsection (4) of this section, the director shall not
issue an order under this section without opportunity for a hearing in
accordance with ORS chapter 183.

(4)
If required for the immediate protection of the public interest, an authorized
delegate may be suspended without a hearing in accordance with ORS 183.430 (2).

(5)
An order of the director suspending or barring an authorized delegate under
this section shall state the grounds upon which the order is based and, except
for a summary order issued in accordance with ORS 183.430 (2), shall not become
effective for at least 20 days after written notice of the order has been sent
by registered or certified mail to the authorized delegate at the authorized
delegate’s principal place of business.

(6)
Appeals from an order of the director suspending or barring an authorized
delegate may be taken to the courts of this state as provided by ORS chapter
183. [1999 c.571 §18]

717.285
Limit on responsibility of licensee; costs and attorney fees. (1) The
responsibility of a licensee to any person for a money transmission conducted
on that person’s behalf by the licensee or the licensee’s authorized delegate
shall be limited to the amount of money transmitted or the face amount of the
payment instrument purchased plus statutory interest.

(2)
In addition to any amounts under subsection (1) of this section, the court may
award a prevailing party reasonable costs and attorney fees. [1999 c.571 §19]

717.290
Cease and desist order; appeals. (1) If the Director of the Department of
Consumer and Business Services determines that any person has engaged in, is
engaging in or is about to engage in any act or practice constituting a
violation of ORS 717.200 to 717.320 or of any rule adopted or order issued
under ORS 717.200 to 717.320, the director may:

(a)
Order the person to cease and desist from the unlawful act or practice; and

(b)
Take any affirmative action as may be necessary to carry out the provisions of
ORS 717.200 to 717.320, including assessing the costs of any investigation.

(2)
Except as provided in subsection (3) of this section, the director may not
issue an order under this section without opportunity for a hearing in
accordance with ORS chapter 183.

(3)
If required for the immediate protection of the public interest, the director
may issue a cease and desist order without a hearing in accordance with ORS
183.430 (2).

(4)
A cease and desist order of the director under ORS 717.200 to 717.320, 717.900
and 717.905 must state the grounds upon which the order is based and, except
for a summary order issued in accordance with ORS 183.430 (2), does not become
effective for at least 20 days after written notice of the order has been sent
by registered or certified mail to the person at the person’s principal place
of business.

(5)
Appeals from a cease and desist order of the director may be taken to the
courts of this state as provided by ORS chapter 183. [1999 c.571 §20; 2005
c.338 §23]

717.295
Injunctions; consent orders. (1) If the Director of the Department of
Consumer and Business Services believes that any person has engaged in, is
engaging in or is about to engage in any act or practice constituting a
violation of any provision of ORS 717.200 to 717.320, 717.900 and 717.905, or
of any rule or order adopted or issued under ORS 717.200 to 717.320, 717.900
and 717.905, the director may initiate an action in the Circuit Court for
Marion County to enjoin the act or practice and to enforce compliance with any
provision of ORS 717.200 to 717.320, 717.900 and 717.905 or of any rule or
order adopted or issued under ORS 717.200 to 717.320, 717.900 and 717.905. Upon
a proper showing, a permanent or temporary injunction, restraining order or
writ of mandamus shall be granted or a receiver or conservator may be appointed
for the defendant’s assets. The director shall not be required to post a bond.
The court may award a prevailing party reasonable attorney fees and costs.

(2)
The director may enter into consent orders at any time with any person to
resolve any matter arising under ORS 717.200 to 717.320, 717.900 and 717.905. A
consent order must be signed by the person to whom it is issued or a duly
authorized representative, and must indicate agreement to the terms contained
in the consent order. A consent order need not constitute an admission by any
person that any provision of ORS 717.200 to 717.320, 717.900 and 717.905, or of
any rule or order adopted or issued under ORS 717.200 to 717.320, 717.900 and
717.905, has been violated, nor need it constitute a finding by the director
that the person has violated any provision of ORS 717.200 to 717.320, 717.900
and 717.905, or of any rule or order adopted or issued under ORS 717.200 to
717.320, 717.900 and 717.905.

(3)
Notwithstanding the issuance of a consent order, the director may seek civil or
criminal penalties or compromise civil penalties concerning matters encompassed
by the consent order, unless the consent order by its terms expressly precludes
the director from so doing. [1999 c.571 §22]

717.300
Subpoena authority.
(1) For purposes of an investigation or proceeding under ORS 717.200 to
717.320, 717.900 and 717.905, the Director of the Department of Consumer and
Business Services may administer oaths and affirmations, subpoena witnesses and
compel their attendance, take evidence and require the production of books,
papers, correspondence, memoranda, agreements or other documents or records
that the director considers relevant or material to the inquiry. Each witness
who appears before the director under a subpoena shall receive the fees and
mileage provided for witnesses in ORS 44.415 (2).

(2)
If a person fails to comply with a subpoena issued pursuant to this section or
a party or witness refuses to testify on any matter, the judge of the circuit
court of any county, on the application of the director, shall compel obedience
by proceedings for contempt as in the case of disobedience of the requirements
of a subpoena issued from the court or a refusal to testify. [1999 c.571 §23]

717.305
Consent to jurisdiction of courts; director as agent for service of process. (1) Any licensee,
authorized delegate or other person that knowingly engages in the money
transmission business under ORS 717.200 to 717.320, 717.900 and 717.905, with
or without filing a license application, is considered to have:

(a)
Consented to the jurisdiction of the courts of this state for all actions
arising under ORS 717.200 to 717.320, 717.900 and 717.905; and

(b)
Appointed the Director of the Department of Consumer and Business Services as
the licensee’s, delegate’s or person’s lawful agent for the purpose of
accepting service of process in any action, suit or proceeding that may arise
under ORS 717.200 to 717.320, 717.900 and 717.905.

(2)
Within three business days after service of process upon the director, the
director shall transmit by certified mail copies of all lawful process accepted
by the director as an agent to the person for whom service of process is
accepted at the person’s last known address. Service of process shall be
considered complete three business days after the director deposits copies of
the documents in the United States mail. [1999 c.571 §26]

717.310
Rules.
(1) The Director of the Department of Consumer and Business Services may adopt
rules for the purpose of carrying out the provisions of ORS 717.200 to 717.320,
717.900 and 717.905.

(2)
In addition to the notice requirements of ORS chapter 183, before the director
adopts a permanent rule, the director shall submit a copy of the proposed rule
to each licensee. [1999 c.571 §25]

717.315
Deposit of moneys in Consumer and Business Services Fund. All fees,
charges, costs and civil penalties collected by the Director of the Department
of Consumer and Business Services under ORS 717.200 to 717.320, 717.900 and
717.905 shall be paid to the State Treasurer and credited as provided in ORS
705.145. [1999 c.571 §28; 2011 c.597 §290]

717.320
Short title.
ORS 717.200 to 717.320, 717.900 and 717.905 may be cited as the “Oregon Money
Transmitters Act.” [1999 c.571 §27]

717.900
Civil penalties.
(1) If the Director of the Department of Consumer and Business Services finds
that a person has violated any provision of ORS 717.200 to 717.320, 717.900 and
717.905, or of a rule adopted or order issued under ORS 717.200 to 717.320,
717.900 and 717.905, the director may impose a civil penalty in an amount
specified by the director, not to exceed $1,000 for each violation or, in the
case of a continuing violation, $1,000 for each day that the violation
continues. Civil penalties under this section shall be imposed in the manner
described in ORS 183.745. A penalty shall not be assessed under this section
until after the person subject to the penalty has been notified in writing of
the nature of the violation and has been afforded a reasonable period of time,
as set forth in the notice, to correct the violation and has failed to do so.

(2)
Appeals from orders of the director under this section may be taken to the
courts of this state as provided by ORS chapter 183.

(3)
The director may compromise and settle with and collect civil penalties from
any person for violations of any provision of ORS 717.200 to 717.320, 717.900
and 717.905, or of any rule adopted or order issued under ORS 717.200 to
717.320, 717.900 and 717.905. [1999 c.571 §21]

717.905
Criminal penalties.
(1) Except as provided in this section, violation of any provision of ORS
717.200 to 717.320, 717.900 and 717.905 is a Class A misdemeanor.

(2)
Any person that makes a material, false statement in any document filed or
required to be filed under ORS 717.200 to 717.320, 717.900 and 717.905 with the
intent to deceive the recipient of the document is guilty of a Class C felony.

(3)
Any person that engages in the business of money transmission without a license
is guilty of a Class C felony. [1999 c.571 §24]